Levi Strauss & Co. Cls A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.98%.
Did LEVI Beat Earnings? Q4 2025 Results
Levi Strauss delivered a cleaner-than-expected finish to fiscal 2025, posting fourth-quarter earnings per share of $0.41 against a consensus estimate of $0.39, a beat of 5.13%, while revenue of $1.77 billion topped the $1.71 billion estimate by 3.11%, even as the top line slipped 4.0% from the year-ago period. The key driver behind the quarter's relative strength was the company's direct-to-consumer channel, which posted 8% reported growth and now accounts for 49% of total net revenues, underscoring how the brand's ongoing shift away from wholesale is reshaping its earnings profile. That momentum was partially offset by tariff headwinds that compressed gross margin by 100 basis points to 60.8% and weighed on adjusted EBIT margin, which fell to 12.1% from 13.9% a year ago. Looking ahead, management guided fiscal 2026 for reported revenue growth of 5% to 6% and adjusted diluted EPS of $1.40 to $1.46, assuming U.S. tariffs on China imports remain at 30%, a backdrop that has nonetheless drawn at least one Wall Street analyst to raise their price target on the stock.
- DTC channel growth of 8% reported and 10% organic, with DTC comprising 49% of total net revenues
- E-commerce net revenues grew 19% on a reported basis and 22% on an organic basis
- Beyond Yoga brand grew 37% reported and 45% organic
- Europe net revenues grew 8% reported and 10% organic
- High-single digit comps in DTC channel
- Organic net revenues growth of 5% building on 8% growth in the prior year
“Over the past few years, we've taken bold steps toward becoming a DTC-first, head-to-toe denim lifestyle brand. We have narrowed our focus, improved operational execution and built greater agility across the organization. As a result, we've elevated the Levi's® brand and delivered faster growth and higher profitability, as reflected by our Q4 and full year 2025 results. While we still have important work ahead, the company is at an inflection point—emerging as a stronger, more resilient global business ready to define the next chapter of LS&Co.”
Levi Strauss CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, the company expects reported net revenue growth of 5% to 6%, organic net revenue growth of 4% to 5%, gross margin flat to prior year, adjusted EBIT margin expanding to 11.8% to 12%, a tax rate of approximately 23% (2 points higher than prior year), and adjusted diluted EPS of $1.40 to $1.46 (including an approximate $0.04 headwind from higher tax rate). Guidance assumes U.S. tariffs on imports from China remain at 30% and Rest-of-World at 20%, and no significant worsening of macro-economic pressures, inflationary pressures, supply chain disruptions, potential tariffs, or currency fluctuations.
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Figures from SEC filings and company reports. Not investment advice.